Petrol, diesel price hike: RBI governor calls for reduced indirect taxes on fuel -Anulekha Ray

-Livemint.com

* Central and state taxes make up for 60% of the retail selling price of petrol and over 54% of diesel

* On 20 February, petrol price was hiked by record 39 paise per litre and diesel by 37 paise a litre

Reserve Bank of India governor Shaktikanta Das called for reduced indirect taxes on petrol and diesel to contain the fuel prices at a reasonable level. Petrol and diesel prices in India have witnessed a steep climb since the past one week. "CPI inflation excluding food and fuel remained elevated at 5.5% in December, due to inflationary impact of rising crude oil prices and high indirect tax rates on petrol and diesel, and pick-up in inflation of key goods and services, particularly in transport and health categories," RBI governor said in the MPC minutes, published on Monday.

"Proactive supply side measures, particularly in enabling a calibrated unwinding of high indirect taxes on petrol and diesel – in a co-ordinated manner by centre and states – are critical to contain further build-up of cost-pressures in the economy," he further mentioned. Central and state taxes make up for 60% of the retail selling price of petrol and over 54% of diesel.

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